Telstra axes 8,000 jobs as company moves to 'cut costs'

"We are now at a tipping point where we must act more boldy if we are able to continue to be the nation's leading telecommunications company", Mr Penn said.

'This means that some roles will no longer be acquired, some will change and there will also be new ones created'.

"We understand the impact this will have on our employees and once we make decision on specific changes, we are committed to talking to impacted staff first and ensuring we support them through this period".

Beneath it is an attempt to leverage the $3 billion investment in digitising its platforms it has been making to fundamentally change its retail offer, the way it interacts with its customers and the way it is itself structured.

The Telstra2022 strategy envisions the company remaining the premium telco brand that will lead and win in the 5G market that is expected to bloom from next year onwards.

Under Telstra2022 all Telstra's 1800 consumer and small business plans are going to be "retired, " replaced by 20 core plans sitting on digital platforms.

The struggling firm plans to axe one in four executive and management positions over the next three to four years.

To create a leaner operation, it will also split its mobile and infrastructure divisions into separate businesses.

Eliminating the need for one-third of customer service calls within two years and two-thirds by FY22.

"In an industry which is booming, Telstra has clearly chosen to prioritise short term profits to keep shareholders happy, instead of investing in the future of Australia's network".

The cuts come less than a month after Telstra warned its 2017/18 earnings will likely be at the bottom of its guidance range of $10.1 billion to $10.6 billion, blaming increasing competition in mobile and fixed broadband, and rising costs from the national broadband network.